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Uday Kotak has merged his group’s alternate fund management and investment advisory businesses into an entity with $18 billion under management. With this, Kotak Investment Advisors has renamed itself as Kotak Alternate Asset Managers that combines both the funds.
Kotak Alternate’s MD, Srini Sriniwasan, said at a press meet that under the new banner it would be able to attract more investors, especially domestic HNIs and family offices looking for more investment opportunities.
“The name change reflects our strategy to harness the combined power of ₹1.47 trillion capital and direct it to the best opportunities available in India across asset classes, with global standards of transparency and governance,” he said.
The company has raised dedicated funds for private equity, real estate, private credit, strategic situations, data centres and infrastructure over the last 17 years. The merged entity will include $8.9 billion in alternate investment funds and the advisory business with $9.1 billion under management.
“This makes us the largest asset manager in India by a yard,” Sriniwasan, managing director of the newly created entity, told Reuters.
The new entity has its largest investment funds in the real estate sector, with $3.4 billion in assets, followed by special situation funds which will hold a combined $2.6 billion and invest in stressed firms. It also has $100 million private credit fund, a segment in which local and global competition is heating up.
Lakshmi Iyer, the Chief Executive Officer of the investment advisory business at KIA, told reporters that it has integrated the asset advisory and the asset management businesses, and the combined strength of the entity will be $18 billion of assets raised or managed.
Sriniwasan said Kotak has had a consistent record of delivering higher returns for investors from whom it has raised while the investment advisory business works with 300 family offices and high net worth individuals.
“As India matures, investment surpluses will grow,” said Sriniwasan. “There will be new sets of opportunities that will come in,” he said, adding that the company may consider launching funds for segments like logistics, warehousing and “permanent capital vehicles” such as real estate investment trusts, according to a Reuters report.
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